RBI has issued new guidelines according to which some restrictions will apply on ATM transactions. The number of free transactions at own bank ATMS remains five, but includes both financial and non-financial (like balance enquiry) transactions. For other bank ATMs, consumers in cities like Trivandrum will not suffer, those in the six metros of Bengaluru, Chennai, Hyderabad, Mumbai, Delhi, and Kolkotta can now use their ATM cards only three times each month.
An amount upto Rs. 20/- may be charged for usage over the free limit. While RBI has stated that the banks have the option of allowing more free transactions, it is unlikely that any of the major banks will pass on this benefit to the consumers. The new guidelines will be applicable from November 1 this year.